Form F stock transfer

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

one of my customer sending their equipment from one state to another state and they have registered in both the state. For which they are issuing form f from one state to another state. Whereas the authority concern is asking us to pay the tax on misuse of issuance of form f due to no sale effected in the received branch. Our contention is once the job gets over we will transfer the equipment to respective transferror state. Whereas our client is liable to pay only service tax on the proving of services to various clients. There is no transfer of property involved in the transaction, possession n control with our client only. Can any one can help how to defend this issue.

AI Summary

Tax Authority's Demand Incorrect: No CST on Interstate Equipment Transfers Under Section 6A with Form F Provided. A customer is transferring equipment between states where they are registered, using Form F. The tax authority demands tax due to no sale occurring at the receiving branch. The customer argues that the equipment will return to the original state after use, and only service tax applies, as no property transfer occurs. Respondents clarify that under Section 6A of the CST Act, interstate transfers without sale do not incur CST if Form F is provided. The authority's demand is incorrect, as Form F confirms receipt and accounting, not sale. The customer is advised to explain this to the authority.